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Generally I would agree with you, but I just checked where I am at and it appears that the less the competition the higher the price. I compared a few small rel
by mhuffman 2y ago
Generally I would agree with you, but I just checked where I am at and it appears that the less the competition the higher the price. I compared a few small relatively poor towns that I am familiar with to larger ones that I know charge between 4 and 7 times as much per sqft for commercial real estate, and the more expensive tacos are in the poorer towns! Up to $0.40 cheaper in the larger more bougie towns. My only guess is that there is more competition in those larger towns.
- eonwe 2y agoCould there be other explanations here? Like marginal cost of one taco when there might be less customers?
- lotsofpulp 2y agoAlso, higher labor prices, since labor is also a pretty big component of cost in the restaurant business. That’s why SoCal has the highest land prices, but not the highest priced food at restaurants.
- mhuffman 2y agoWouldn't that also apply in places like NYC and LA? Where the enormous traffic volume offers lower marginal costs?